1. Copyright © 2011 Pearson Education 16-1 International Business Environments and Operations, 13/e Global Edition Part 6 Managing International Operations

2. Copyright © 2011 Pearson Education 16-2 Chapter 16 Marketing Globally

3. Copyright © 2011 Pearson Education 16-3 Chapter Objectives To understand a variety of international product policies and their appropriate circumstances To be aware of product alterations when deciding between standardized and differentiated marketing programs among countries To appreciate the pricing complexities when selling in foreign markets To be familiar with country differences that may necessitate alterations in promotional practices To comprehend the different branding strategies companies may employ internationally To discern effective practices and complications of international distribution To perceive why and how emphasis within the marketing mix may vary among countries

4. Copyright © 2011 Pearson Education 16-4 Marketing as a Means of Pursuing an International Strategy

5. Copyright © 2011 Pearson Education 16-5 Marketing Strategies Overall international marketing strategies should depend on the company’s: Marketing orientation Target market

6. Copyright © 2011 Pearson Education 16-6 Market Orientation Production Orientation Sales Orientation Customer Orientation Strategic Marketing Orientation Social Marketing Orientation

7. Copyright © 2011 Pearson Education 16-7 Segmenting and Targeting Markets Three Approaches –By Country –By Global Segment –By Multiple Criteria Mass Markets versus Niche Markets

8. Copyright © 2011 Pearson Education 16-8 Why Firms Alter Products Legal Considerations Cultural Considerations Economic Considerations Alteration Costs Product Line Extent and Mix

9. Copyright © 2011 Pearson Education 16-9 Potential Obstacles in International Pricing Government intervention Market diversity Export price escalation Fluctuations in currency value Fixed versus variable pricing Relations with suppliers

10. Copyright © 2011 Pearson Education 16-10 Promotion Strategies The Push-Pull Mix –Factors in Push-Pull Decisions Problems in International Promotion –Standardization: Pros and Cons

11. Copyright © 2011 Pearson Education 16-11 Branding Strategies World Wide Brand versus Local Brand –Problems with Uniform Brands Language Brand Acquisition Country-of-Origin Image Generic and Near Generic Names

12. Copyright © 2011 Pearson Education 16-12 Distribution Strategies Distribution reflects different country environments: It may vary substantially among countries. It is difficult to change.

13. Copyright © 2011 Pearson Education 16-13 Internal Handling Distribution may be handled internally: When volume is high When companies have sufficient resources When there is a need to deal directly with the customer because of the nature of the product When the customer is global When the distribution form is a competitive advantage

14. Copyright © 2011 Pearson Education 16-14 Qualifying Distributors Some evaluation criteria for distributors include their: Financial capability Connections with customers Fit with a company’s product Other resources Trustworthiness Compatibility with product image

15. Copyright © 2011 Pearson Education 16-15 The Challenge of Getting Distribution Distributors choose which companies and products to handle. Companies: May need to give incentives May use successful products as bait for new ones Must convince distributors that product and company are viable

16. Copyright © 2011 Pearson Education 16-16 Hidden Costs and Gains in Distribution Factors that contribute to cost differences among countries in distribution: –Infrastructure conditions –Number of levels in distribution system –Retail inefficiencies –Size and Operating Hour Restrictions –Inventory Stock-Outs

17. Copyright © 2011 Pearson Education 16-17 E-Commerce and the Internet Evidence suggests online shoppers universally have some similar characteristics: –Desire convenience –Are heavy users of e-mail and the Internet –Have favorable attitudes toward direct marketing and advertising Opportunities Problems

18. Copyright © 2011 Pearson Education 16-18 Managing the Marketing Mix Gap Analysis: Types of Gaps –Usage Gaps –Product Line and Distribution Gaps –Competitive Gaps

19. Copyright © 2011 Pearson Education 16-19 Future: Evolving Challenges to Segment Markets Disparities between “haves” and “have-nots” will increase Companies will have conflicting opportunities to serve both “haves” and “have-nots” Attitudinal differences continue to affect demand: –Materialism, Cosmopolitanism, and Consumer Ethnocentrism

20. Copyright © 2011 Pearson Education 16-20 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.